Lesson 1 Understanding the Organization of an Agribusiness
Dec 30, 2015
Lesson 1
Understanding the Organization of an Agribusiness
Next Generation/Common Core Standards Addressed CCSS.ELA Literacy.RST.9‐10.8 Assess the extent to which the
reasoning and evidence in a text support the author’s claim or a recommendation for solving a scientific or technical problem.
CCSS.ELA Literacy. RST.11‐12.9 Synthesize information from a range of sources (e.g., texts, experiments, simulations) into a coherent understanding of a process, phenomenon, or concept, resolving conflicting information when possible
Bell Work - Student Objectives
Define organizing, organization, and organizational structure.
Identify the basic principles of good business organization.
Identify the three functions of management in a business.
Describe a business organizational chart.
Vocabulary Compensation Conglomerate
organization Finance Horizontal
integration Marketing
Organization Organizational
chart Organizational
structure Organizing Resources Vertical
integration
Interest Approach
Bring two students to the front of the room. Ask each of them which stack they’d like to refile.
Why? Explain Ask students to consider what would happen if a
business were as unorganized as that stack of units.
How much work would they get done? Discuss the importance of an organized locker,
book bag, or desk.
Organizing One of the main components of
management. Without it a business will have
difficulty carrying out its mission and
plans.
The Organizing Process
Combining people and resources to accomplish a business’s plans.
Five Main Concerns with organizational structure
Division of labor Delegation of authority Departmentalization Span of control Coordination
Organization A group of people working together to
accomplish specific goals They may work in a formal structure,
such as a scheduled meeting Or informally, such as before or after
work Both of which are meant to
accomplish the same goals
What are the basic principles of a good business organization?
Resources must be available for the business such as: Facilities Labor Equipment Capital
Efficient Business Operation
The manager is responsible for motivating their employees to work efficiently and use the business’s resources wisely
Employee compensation should be equitable and provide incentives for productivity
Compensation
Compensation is wages or remuneration for work done.
Satisfied employees will provide better service than unhappy employees
Functions of Management
There are three functions of management within any agribusiness Finance Operations Marketing
Finance
Finance is the management of all fiscal transactions within a business.
Fiscal operations include inventory and credit policies that affect the business’s capital requirements
Operations Operations refer to the
products or services a business offers.
The function of the manager is to improve operations by making production more efficient.
Marketing Marketing includes the
distribution, pricing, and advertising of goods and services.
A successful business manager is aware ofwhat the consumer wants.
What is a business organizational chart?
Conceptual presentation of the areas of responsibility and channels of communication within a business.
Ways for a Business to be Organized or Expanded
Federated or centralized Vertically or horizontally
integrated Conglomerate
Federated and Centralized Federated and centralized
organizations both consist of a company headquarters withseveral local organizations.
Policies and specialized operations are handled by the parent company.
Operating policies are handled by the local organization.
Vertical Integration
Method of business expansion.
Performance of two or more steps
in the marketing function by one business
Horizontal Integration
May include many businesses, each of which performs similar marketing functions over a wide area.
Conglomerate Organization
Includes a number of unrelated activities as a means of entering a number of markets.
Review/Summary Define the following terms
Organizing Organization Organizational structure
What are the basic principles of good business organization?
What are the three functions of management in a business?
Describe a business organizational chart.
The End!